Bermuda-based Teekay LNG Partners LP has announced it has agreed to sell approximately 1.7 million common units to an institutional investor for net proceeds, including its general partner's proportionate capital contribution, of approximately $51 million.

The common units are being sold in line with a registration statement previously filed and declared effective by the Securities and Exchange Commission.

The partnership intends to use the net proceeds from the sale for general partnership purposes, which may include funding newbuilding deliveries or future vessel acquisitions. The sale is expected to close on July 16, 2010, after which the partnership will have approximately 54.1 million common units outstanding.